MN New Min. Wage Bill is Scary

[lvstephanie]

Well the democrats in my state are really planning to screw over the job front in my state. The have just recently passed a new minimum wage bill in the legislature and Gov. Dayton will probably sign it on Monday. Not only does it increase the minimum wage in our state, but they are doubling down on its impact by tying future increases to cost of living.

Right now the job situation in our state is fairly bleak as it is. We still have many of our college graduates having to settle for low paying jobs because of the scarcity of work available in our state. More and more industries are moving their locations to different states that don't have the tax burden that MN has; South Dakota -- a state that borders ours to the West -- has no income tax, and so while cities in that state like Soux Falls are seeing a boost to their economy, our state continues to lose business. So just from this standpoint, a minimum wage increase will make the state even more business-unfriendly leading to even more businesses fleeing the state for greener pastures.

But this bill is even worse than a mere minimum wage increase. By tying the minimum wage to the cost of living in future years, they will in effect just be exacerbating the problem by creating a vicious circle. When the government increases the minimum wage, not only does this just affect those making minimum wage, but continues to have ripples throughout all pay scales within a company. Assistant managers, lead cashiers, etc. that are currently making a little above minimum wage will now be paid the same as those inexperienced works that they are in charge of. So if the company wants to attract a higher quality of worker that those positions require, they will have to increase their wages as well.

With all of this increase in the expense that the companies will be forced to commit to (and all without any efficiencies to justify the added expense) they may be required to increase their prices. Since this minimum wage increase will affect all industry sectors, eventually the goods and services in this state will have to increase to meet the new minimum wage increase. But because the minimum wage will be tied to the cost of living, as goods and services increase, so does the cost of living which in turn increases the minimum wage which will increase the price of goods and services, which increase the cost of living, which increases the minimum wage, etc. The only way to break this vicious cycle is for the company to offset this added expense of operating in our state, meaning they will probably just pack up and move to a different state (esp. since we have business-friendly states neighboring our, meaning that moving costs will be relatively low making this option very attractive).

It's sad how the leaders in our state don't have basic economical sense to realize how this bill is going to hurt our state even more than the situation it's currently in. 

[jmccaskill]

Min. wage screws up every aspect of the economy, it is ONLY a political tool to pander to the masses. Idiocy to the max.

[carriesmith64]

I believe in a min wage increase with large corporations such as fast food establishment that brings in billions of dollars a year, but at the same time it hurts the mom and pop stores barely struggling to survive.  But where is the middle ground?  Or is there even one?

[potluck6]

I've heard that  many low income folks qualify for food stamps.If they made  more and got more working hours it might solve that problem. We will be geting 9.00 an hour in Ca .To rent a 2bd room 1bath house in most cities is about 1800.00 and for a small house.

[sharonpatri55]

Minnesota's new Minimum Wage Bill, as you described, appears to be another political maneuver that does little to serve the people or the state's economy. I firmly believe that every elected official in this country should receive minimum wage for their services. It would definitely bring a different class and character of officials into these positions who would be more willing to focus on serving the people who voted for them and not the people who extended financial favors.

[sfreeman8]

Remember people, this is a voting year for most state representatives and for Washington political hacks. They're going to blabber about what they're going to do for you and/or what THEY think YOU want - at least until they're elected.

People believe most of the stories these politicians tell because they don't realize they can do some research and come up with proof of their lies. I did it in my state for 3 candidates running against the current governor. Found all 3 "stretching the truth" or telling out-and-out lies.

Don't vote straight party. Vote with your head and make sure you research for the truth before voting.

[bhiett]

People just do not realize that raising minimum just starts a cycle of rising prices; when workers are paid more, their employers have to raise prices of their products to stay afloat so their higher wages end up just keeping them even.  Salaried workers start demanding raises to offset the higher prices and it just results in a cycle that benefits no one.  People who are on fixed incomes are the real losers in this philosophy, as they have no way to keep up.  Cost of living increases for retirees through Social Security are a joke and through their company retirement plans are often non-existent.